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Active construction projects worth US$ 698 billion to boost hardware and tools industry.
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| 26 Apr 2009 |
Though the current economic slowdown has put on hold a large number of construction projects in the UAE and other Gulf countries, there still remains active projects under development worth an estimated US$ 698 billion.
These active projects combined with the construction projects delayed represent a market potential for the hardware and tools sector. Ms. Elisabeth Brehl, Managing Director of Epoc Messe Frankfurt, said “Published researches showed that majority of the projects are likely to resume at some point in the near future, creating a ‘dormant opportunity’ for contractors able to ride out the economic storm.”
“Market Pundits are confident that there are delayed opportunities in terms of suspended contracts. The money involved, they say, is billions and billions of dollars and it is still there. There is still close to US$ 698 billion worth of projects on the table, and only in the UAE does this opportunity exist.”
Further, Ms. Brehl added that, “Confidence building measures put in place by the UAE leadership has promoted stability in the UAE market and boosted investor confidence. The measures include the decisive action taken by the UAE Central Bank to support half of an unsecured, US$ 20 billion, 5-year notes issue at an annual interest rate of 4 per cent. This was followed by a move by Abu Dhabi, which injected $4.4 billion into five of its own banks.”
She added that the UAE in September set up a US$ 13.6 billion fund for the countries’ banks to boost liquidity. In October, it guaranteed bank deposits and said it would add another $19 billion into the banking system. Abu Dhabi’s wealth fund had $328 billion in assets at the end of 2008, according to a study by economists at the Council on Foreign Relations.
“All these moves ensure that active construction projects would continue and spur demand for hardware and tools in the UAE and the Gulf countries, as neighboring Gulf countries had also instituted confidence building measures to stabilize their economies and lessen the impact of recessionary pressure.”
Hardware and Tools Middle East is scheduled to open from May 17 to 19, 2009, at the Dubai International Exhibition and Convention Centre. The trade fair is the Middle East's only dedicated event for power tools, hand tools, hardware, ironmongery, and workshop and woodworking machinery.
Hardware and Tools Middle East is a permanent fixture for all retailers, distributors and contractors who deal with the hardware and tools industry.
Hardware and Tools Middle East has firmly established itself as a unique platform for industry professionals in the region to source the products and solution for the hardware & tools industry. It is a business platform to discuss best practice for the development of the UAE and the Middle East Region. The event will provide a meeting place for buyers and specifiers to network with product and services suppliers delivering solutions for all aspects of the industry.
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